S&P 500 Slips as Chip Stocks Fall Ahead of Nvidia, PCE and Iran Sanctions
U.S. markets opened lower Monday as tech and semiconductor stocks sold off ahead of Nvidia’s earnings, the upcoming PCE inflation report, and fresh Iran sanctions. The S&P 500 fell 0.14% at the open and was down about 0.30% around 9:40 a.m. ET, with selling pressure strengthening.
Chip stocks led the risk-off move. Micron slid 5.47%, Intel fell 3.64%, AMD dropped 2.81%, and Broadcom declined 1.19%. Nvidia was also weaker (-0.62%). Traders were focused on Wednesday’s Nvidia results after an AI-led rally built unusually high expectations.
The S&P 500’s intraday chart turned more bearish after the index failed to hold near the 7,660 area. A breakdown below roughly 7,640–7,660 could put additional downside pressure toward the mid-7,500s.
Inflation risk stayed elevated as the Dow Jones Commodity Index broke out to around 1,400, supporting concerns that energy and raw-material costs may keep inflation sticky. Markets currently price about a 40% probability of a September rate increase. Higher long-term yields also weighed on growth stocks, with the 30-year Treasury yield near 5.25%.
Geopolitics added another layer of uncertainty. Treasury Secretary Scott Bessent is set to outline Iran sanctions at 2 p.m. ET, while oil prices eased on profit-taking.
Overall, the S&P 500 and Nasdaq remain sensitive to any further deterioration in chip sentiment, bond yields, and geopolitical headlines.
Bearish
This article signals a broad risk-off setup. Chip stocks and tech led the decline, while long-term Treasury yields stayed elevated and commodities rebounded—together they typically tighten financial conditions (higher discount rates, weaker growth sentiment). For crypto traders, that usually means reduced liquidity appetite and a higher likelihood that BTC/ETH trade in a defensive mode until catalysts clear.
In similar past episodes—when semiconductors/AI bellwethers stumble ahead of earnings and yields remain near multi-year highs—crypto often sees either (1) volatility spikes tied to cross-asset de-risking or (2) lower follow-through on upside until the market regains confidence post-data/earnings. Here, the timing cluster (Nvidia earnings + PCE inflation + Fed expectations + Iran sanctions) can keep volatility elevated in the short term.
Longer-term, if commodity-driven inflation pressure forces persistently higher rates, that would be a headwind for risk assets, including crypto. However, if the market digests sanctions/earnings and yields stabilize, the bearish pressure could fade quickly—so the move looks more like a near-term drag than a confirmed long-cycle crypto downtrend.